Make about $50,000.00 per year gross. About to inherit about $57,000.00. I owe about $20,000.00 on a auto loan and another $8000.00 in other credit debt. Best to completely pay off loans then invest remainder or keep making current payments and use 100% of inheritance for investing purposes or some sort of hybrid mixture? Would like to get rid of my wife's 1987 Ramcharger, give her my 2003 Silverado and buy myself a new 2007 Silverado. Question too detailed???

Fr_Chuck

So you basicly want to spend all the money.

Since interest on cars and credit cards are much more than money willl make in the bank, you are much better off paying those off ( as long as you don't charge the cards back up, but put them away or cut them up.

as for the cars why a 2007, why not a great 2006 that may have been a rental or fleet vechile well maintained, with warranty and you don't lose all that value while you drive off lot.

RichardBondMan

Really need much more detail, such as 1) have children, if so their ages, if you want to plan for educ expenses 2) if you own home, if you rent, if you desire to own home 3) if you have adequate life, health, disability, auto, ho or renters insurance 3) if you have 3 to 6 months of net income in an emergency fund etc etc such as your tolerace for risk, and on and on such as if you are funding an IRA, 401(k) or other long term tax sheltered retirement plan. But basically I would pay off the debt, establish or begin establishing the emergency fund. not purchase the 07 PU, rather purchase for cash a good used vehicle that you are satisfied with. After all that, investing would be OK with a proper mix of mutual funds if you are not an experieced investor.

ActionJackson

1) No children
2) Manage apartments...free rent.
3) Auto Ins (both vehicles) & Renter's Ins. My own life insurance policy and a company sponsored policy.
4) About $3000.00 paper currency and $5000.00 Gold and Silver.
5) Company matching 401K of which I contribute 6% of my income.

Planning on opening a Money Market account and a long term CD. Will definitely pay off my truck. Will substantially pay down my credit card (8.9% interest). Will buy some more gold and silver. Will probably talk to an investment professional before I do anything. Land? House? Not too sure. 46 years old. $25,000.00 currently in 401K. Perhaps too much personal info but I'm well armed as well.

ActionJackson

[quote=Fr_Chuck]So you basicly want to spend all the money.

Ten years ago, I would have spent it all in a day. Older now and feeling less invincible. Must consider the future but still like a little flash...not dead yet. I used to literally live by the philosophy that I may not be here tomorrow so I may as well live today and enjoy life on daily terms. Really didn't believe that I would live this long (47 this September). Do I "want" to spend all the money? Absolutely, but I'm not going to. If I were really wise, I would make this money work for me and get rich...don't know how though and not sure I have the patience.

RichardBondMan

Thanks for the info, I would put aside, 3 -6 months of net income in emerg fund, pay off debt, purchase place to live (mortgage is ok but I would pay off quick as posssible), ask investment advisor rules of using "catch up" IRA to set aside more for retirement (make plan to retire, set date, shoot for that date).

ActionJackson

Thanks BondMan. Good advise as things are right now. With China growing by leaps and bounds; with US companies jumping ship just as quickly; with our country on the cusp of entering a "North American Union"; with inflation on the rise in high gear; with an all-time record high national debt; with third-worlders pouring into our land at an exponential rate devouring jobs at ultra-low wages, avoiding taxation, creating an added tax burden on the American taxpayer and creating conditions ripe for civil war. With all these things and more happening simultaneously, do you really trust "the market?" I'm a purchase agent for a welding supply company and I can see from my seat that we are in trouble. The costs for copper, silver, steel & stainless steel, aluminum, etc. are rising at a huge rate. Not 2 or 3% but 10, 15, & 20% in some cases. The Communist Chinese are buying up the world's resources and positioning themselves to be the dominant leader in the world's economy. They're aggressive and they're communists. The communist philosophy is not the friend of mankind. Anyway, will our 401Ks and IRAs be worth 2 cents in 50 years?

excon

Hello Action:

Your little flash is costing you bigtime. I like flash too, and I drive a 20 year old Volvo. For the one car loan you have, I could buy TEN cars like mine. It runs real good too.

excon

ActionJackson

Yeah, I have decided 1 thing for sure. I am going to completely pay off all credit debts. The $509.00 per month payment on my truck will go directly into a high yield account.